Creative industry tax reliefs are an evolving set of tax reliefs that exist to encourage UK creative industry growth.

CREATIVE INDUSTRY TAX RELIEFS CAN BE BROKEN DOWN INTO:

· Film tax relief

· Animation tax relief

· High-end TV and children’s programmes

· Video Games Production tax relief

· Theatre tax relief

· Orchestra tax relief

THESE RELIEFS ARE AVAILABLE FOR:

· Film production companies producing films

· Television production companies producing relevant animation or high-end television programmes

· Video games development companies

· Theatre production companies

· Orchestra production companies

Qualifying companies are able to additional tax deductions of up to 100% of enhanceable expenditure or; if a loss is surrendered: 25% of the loss to the amount of enhanceable expenditure.

FILM, ANIMATION AND TV TAX RELIEFS ARE AVAILABLE IN THE FORM OF:

· Enhanced corporation tax relief of up to 100% of the enhanceable expenditure incurred.

· A repayable tax credit for losses surrendered

Enhanced expenditure is capped at the lesser of qualifying UK expenditure or 80% of the total qualifying expenditure for animation and TV tax relief. However, it is important to be aware of the variations across the reliefs.

CULTURAL TEST:

All TV programmes, films and animations must pass a cultural testto be eligible for the relief, or qualify through an internationally agreed co-production treaty certifying that the production is a British Film, British programme or British Animation.

Certification and qualification administered by the British Film institute (BFI). The BFI issue interim certificates for incomplete work or a final certificate where the production is finished,

Film tax relief

FILM TAX RELIEF IS AVAILABLE TO FILMS THAT:

· Pass the cultural test

· Are intended for theatrical release

· Have at least 10% of core expenditure that related to goods or services used or consumed in the UK

· Where the principle photography took place on or after 1st January 2017

Expenditure qualifying for relief: core expenditure

CORE EXPENDITURE INCLUDES EXPENDITURE INCURRED ON:

· Pre production

· Principle photography

· Post Production

The is no relief for an expenses that have also qualified for R&D relief

Animation Tax Relief

ANIMATION TAX RELIEF IS AVAILABLE TO PROGRAMMES THAT:

· Pass the cultural test

· Are intended for broadcast

· Have at least 51% of their total core expenditure being on animation.

· Have at least 10% of the total production costs relating to goods and services used or consumer in the UK

High-end Television Tax Relief

HIGH-END TELEVISION IS AVAILABLE TO PROGRAMMES THAT:

· Pass the cultural test

· Are intended for broadcast

· Are a drama, comedy or documentary

· Have at least 10% of their total production costs relating to goods and services used or consumed in the UK

· Have an average qualifying production cost per hour of production length that is not less than £1 million per hour.

· Have a slot length that relates to the programme that is greater than 30 minutes